Care.com (NYSE: CRCM) is one of 50 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare Care.com to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Care.com and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care.com 0 1 1 0 2.50
Care.com Competitors 395 1533 2581 84 2.51

Care.com currently has a consensus target price of $14.00, indicating a potential downside of 14.69%. As a group, “Internet Services” companies have a potential upside of 2.01%. Given Care.com’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Care.com has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Care.com and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Care.com $169.64 million $8.45 million 164.12
Care.com Competitors $942.22 million $116.70 million 56.02

Care.com’s competitors have higher revenue and earnings than Care.com. Care.com is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Care.com has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Care.com’s competitors have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Care.com and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care.com 3.66% 10.98% 4.67%
Care.com Competitors -0.16% 26.16% 6.02%

Insider and Institutional Ownership

73.7% of Care.com shares are owned by institutional investors. Comparatively, 63.3% of shares of all “Internet Services” companies are owned by institutional investors. 24.7% of Care.com shares are owned by insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Care.com competitors beat Care.com on 9 of the 13 factors compared.

About Care.com

Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.

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